INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: Date ISDS Prepared/Updated: I. BASIC INFORMATION A. Basic Project Data Country: Uzbekistan Project ID: P174323 Additional Project ID (if any): Project Name: Uzbekistan: Syrdarya Efficient Power Generation Project Task Team Leader: Ferhat Esen, Zhengjia Meng, Maksudjon Safarov Estimated Appraisal Date: Estimated Board Date: Managing Unit: IECE1 Lending Instrument: Guarantees Sector: Energy and Extractives Theme: Climate Change, Public-Private Partnerships IBRD Amount (US$m.): [200] IBRD Guarantee IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: Environmental Category: A Simplified Processing Simple [ ] Repeater [ ] Is this a transferred project Yes [ ] No [X] B. Project Objectives: The Project Development Objective (PDO) is to support electricity generation and reduce GHG emissions through private investment in Uzbekistan. C. Project Description: In 2019, the Government of Uzbekistan (GoU) approved the Strategy for Uzbekistan’s Transition to a Green Economy for 2019-2030. The Strategy aims to decarbonize the Uzbekistan economy through (i) reduction of emissions of GHG per unit of GDP by 10 percent of the 2010 level; (ii) a twofold increase in energy efficiency indicators and a decrease in the carbon intensity of GDP; (iii) further development of renewable energy sources, with coverage of more than 25 percent of the total volume of electricity generation; and (iv) increase of the energy efficiency of industrial enterprises by at least 20 percent. The proposed Project will be contributing to the achievement of these targets through improved generation efficiency, and reduced gas consumption and GHG emissions at the Syrdarya Combined Cycle Gas Turbine (CCGT) Thermal Power Plant (TPP) (supported by the WBG) as well as supply efficiency, security, and economic benefits for avoiding the use of alternative fuels (i.e., coal, fossil fuel, biomass, etc.) in case of supply shortages. 1 The Project Concept Note presents the proposed Project (WB Guarantees or Project) for the development of an efficient power plant as CCGT with an installed capacity of [1,500MW]; access roads; water intake, treatment, and pipeline; and wastewater treatment, pipeline, and discharge. In addition, there are the following Associated Facilities: Natural gas pipeline, and substation with Line in Line out (LILO) loops on the existing 500 and 220 kV overhead lines (OHL) for connection to the power grid. The proposed Project is a greenfield development located in the district of Shirin Town, in the Syrdarya Region of Uzbekistan. The Project will be implemented by a private developer to be selected through competitive bidding with WBG support (IFC advisory and WB technical assistance). Private investors will be responsible for the design, construction, financing, operation and maintenance of [1,500MW] CCGT TPP with at least 60 percent efficiency to be procured under the Design Build Finance Operate Maintain Transfer (DBFOMT) model with a 28-year Project Agreement governed by the Uzbekistan Procurement Law (three years’ construction + 25 years’ operations). Power from the planned Syrdarya CCGT TPP (henceforth called the Syrdarya Thermal Power Plant #2 or SyTPP2) will be evacuated to the National Electrical Grid through the new 220kV and 500kV open air switchyards located on the substation area. These substation switchyards will serve for grid interconnection and power evacuation purposes both for SyTPP2 and for SyTPP3. SyTPP31 is also a CCGT [1,500MW] project (moving ahead with early construction phase) developed by Saudi-based company ACWA Power with similar parameters as SyTPP2, while SyTPP1 is the existing GoU-owned and operated Syrdarya TPP (3,000MW). Experience from SyTPP3's construction can be used to screen potential risks from the proposed SyTPP2 Project. The 220kV and 500kV open air switchyards will be connected to the grid by constructing LILO loops from the existing 500 and 220 kV OHLs that run close to the substation area. It is expected that substation cost will be split equally between SyTPP2 and SyTPP3 developers. Because substation and LILO grid interconnection related engineering works will be done by a third party, this part of the Project is considered as associated facility for SyTPP2 as defined by WB/IFC Performance Standards (PS). Natural gas will be supplied from the adjacent Syrdarya gas supply station (SyGSS) via a dedicated pipeline of around 300m. Water for the cooling process (expected to be a wet cooling system) will be pumped from the Yuzhnyy Golodnostepskiy canal (canal Sarkisova) located to the south of the SyTPP2 site via a new dedicated water pipeline, and treated for use in an on-site water treatment plant. The selected project developer will prepare, disclose, and submit environmental and social instruments prior to the Board presentation. Currently, the Project’s environmental and social risk is assessed as A in accordance with the IFC Environmental and Social Risk Allocation Memo (ESRAM), but it will be revisited during Project preparation / Appraisal. According to the national legislation (Decree 541, 07.09.2020), the proposed SyTPP2 is under Category I (high risk paragraph 32, Thermal, photovoltaic, wind power plants and incineration plants with a capacity of 300 MW or higher). Based on the IFC policy on Environmental and Social Sustainability, the Project falls under Category A due to its’ potential for cumulative and transboundary air quality impacts, the proximity to sensitive receptors, and the need for government-led involuntary resettlement. Hence, the conduct of an Environmental and Social Impact Assessment (ESIA) 1 The Syrdarya - ACWA project (SyTPP3) has been supported by EBRD (senior lender, Board approved February 2021), DEG, OFID and commercial banks, which will also benefit from a MIGA guarantee (MIGA Board approved March 5, 2021). MIGA involvement in the ACWA project consists of guarantees, covering non-shareholder loans to the Project, against the risks of currency inconvertibility and transfer restriction, expropriation, war and civil disturbance and breach of contract. 2 will be required to meet national permitting requirements under the Law on Environmental Expertise No.73-II of 25.05.2000 and the requirements of IFC Performance Standards (PSs) 2012. Borrower Capacity: The proposed Project will be implemented by the private developer, which will be competitively selected for private power generation projects. It is expected that a special purpose vehicle/ entity (SPV) will be established to assume responsibility for designing, financing, developing, commissioning, operating, and maintaining the proposed Project. The SPV will enter into an agreed contractual relationship with reputable companies for Engineering, Procurement, and Construction (EPC), and operation and maintenance (O&M). The SPV will include, at a minimum, dedicated environmental and social specialists. The Ministry of Investments and Foreign Trade (MIFT) on the GoU side will be responsible for coordinating and ensuring that all relevant environmental and social requirements are properly included in the Project tender documents. MIFT will have environmental and social specialists within the responsible team who are familiar with both national requirements and the ESF. Additional capacity building, as needed, will be provided to those responsible for preparing and implementing the tender documents. There is the Department of Environmental Impact Monitoring at the Ministry of Energy, which is responsible for engaging environmental monitoring plans for thermal power plants (TPPs) activities. Furthermore, the SD TPP employs an environmental engineer who monitors emission discharges and waste disposal.. On a quarterly basis, the SyTPP1 (GoU-owned and operated) submits a report on atmospheric emissions, discharges, waste disposal with indication of compensation payments to the district department of the State Committee for Environmental Protection. SyTPP1 submits annual reports to the statistical office, using forms 2-e and 3-e on waste generation and emissions. MIFT will also be responsible for ensuring that the developer obtains all necessary permissions and/or agreements from the relevant government institutions prior to commencement of any construction work, and that the developer and its contractors understand their environmental and social obligations. In addition, it should make clear in the RFP that the sub-contractors will also be obligated to adhere to the requirements of the World Bank Group’s Performance Standards (PS). The client has demonstrated the environmental and social capacity necessary to prepare and contract the Project through their management of SyTPP3; two similar World Bank guarantees - Navoi Scaling Solar (P170598; under construction) and Scaling Solar 2&3 (P174322; under preparation); and other solar and wind power projects being prepared and tendered by the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD). Project Location: The Project site is located on the outskirts of Shirin town, 10 km west of Bekabad in Syrdarya Region of Uzbekistan (Figure 1). SyTPP2 (WBG-supported) is co-located with SyTPP3 (ACWA project) under development whichis of the capacity similar to SyTPP2. SyTPP2 and SyTPP3 will operate as “base-load� power stations meaning that they will operate in a continuous manner. The existing Syrdarya TPP (SyTPP1) was commissioned in the early 1970’s and utilizes outdated and inefficient technology. It is near the end of its useful life. It is anticipated that its operation will be limited to back-up power in case of outages at SyTPP2 and SyTPP3. To the north-east, in the area next to SyTPP2 and SyTPP3, 30 ha of land is allocated for the construction of 220kV and 500kV substation with open-air switchyards. The substation will serve as a common for both SyTTP2 and SyTPP3 to evacuate power to the National Grid. ACWA Power, a Saudi-based company that has been selected by the Ministry of Energy to develop SyTPP3, will construct the 220/500kV substation. SyTPP2 developer will pay 50 percent of the cost of substation and its grid interconnection, which will be 3 within the overall SyTPP site. A new 220/500kV switchyard will be constructed to evacuate power from ACWA and Syrdarya CCGTs, designed as an extension of the existing old Syrdarya substation. Therefore, the substation is considered an associated facility. The World Bank with the National Electricity Grid fo Uzbekistan JV (NES) has prepared the ESMF for ESTART project in agreement with all environmental and social standards. Both stations will be fueled with natural gas, which will be supplied by the pipeline that currently delivers gas to SyTPP1. An existing gas distribution station is located ~300 m from the proposed boundary for SyTPP3. A pipeline approximately 300m long will be installed by the gas supplier and will be dedicated to carrying natural gas from the gas distribution station to the Project site boundary. Therefore, for environmental and social review purposes, the gas pipeline is considered an associated facility. The allocated Project area for the proposed SyTPP2 site is an approximately 55 ha greenfield located in Syrdarya region of Uzbekistan, near the city of Shirin, about 150 km south from of Tashkent. An area of approximately 10 to 12 ha is required for the main components of the SyTPP2 leaving sufficient space within the allocated Project site for temporary facilities and laydown areas. Adjacent to the east of the Project site, the SyTPP3, [1,500MW] is being developed by ACWA Power (Saudi Arabia). The SyTPP2 and SyTPP3 will partially replace the existing SyTTP1 [3,000MW], the largest thermal power plant in Uzbekistan, which is located to the south, on the opposite side of the Sarkisov irrigation canal. SyTPP1 has been in operation for over 40 years and scheduled to start partial decommissioning by the commissioning of the proposed Project. This will lead to the increase of power generation, improvement of the generation and supply efficiency, reduction of GHG emissions, and increase in gas savings. The Project site and its immediate surroundings are used for agricultural production. No significant terrestrial biodiversity or cultural heritage features have been identified on-site or nearby. Additional surveys are needed to characterize flora and fauna within the project’s Area of Influence (AoI). The land allocated for the development of the SyTPP2 is a 55ha plot currently owned by the State, with 45ha tenanted between 5 farmers for livestock and commercial crop production. The GoU is responsible for making the land available for the Seller as per the terms of the Power Purchase Agreement (PPA) and has issued a notification to the tenants to return the land to the State as the first step in the government-led resettlement process. The nearest settlement is approximately 320 m from the current site boundary. Construction of the new substation and the new OHLs are likely to cause medium environmental impacts. During the construction works, several types of environmental and social impacts may occur during the project implementation phase, such as (a) increased environmental pollution from waste; (b) noise propagation; (c) air pollution from dust and combustion residues; d) increased pollution of groundwater and surface water resulting from inappropriate handling of machinery oil and chemicals; (e) soil degradation and contamination; (f) damage to human health resulting from improper handling of heavy equipment during construction activities; (g) temporary restrictions on access to private and public assets (land, commercial facilities, roads, markets, trees etc.); (h) land take necessitated by construction activities. These impacts will be mitigated by the application of an environmental and social management plan (ESMP). 4 Figure 1: General Project location Figure 2: Project Site 5 Figure 3. Site Area and Adjacent Features Key Issues 6 The activity consists of the development, financing, construction, operation, and maintenance of 1,500MW SyTPP2 by the selected private sponsor. The electricity generated from the Project will be sold to NES under the Ministry of Energy (off-taker entity) through 25-year PPA. The plant will be developed on the site to be provided and leased by the GoU. The private partner will enter into Public Private Partnerships (“PPP�) with the Government of Uzbekistan. The environmental risk of the Project is rated as high, and the social risk is rated as substantial. Risk ratings will be reviewed carefully during Project preparation and confirmed at appraisal. The key environment, social, health and safety risks associated with this Project include operational air emissions (including cumulative impacts with the existing plant) and GHG emissions; operations phase noise (including cumulative noise); generation of solid waste (in particular, hazardous waste); water use and discharge; storm water drainage; management of workers; and contractor and community health and safety during construction. The risk of historic contamination of land is considered low due to the greenfield nature of the site. However, there is a municipal landfill adjacent to the site raising the potential for contaminants to leach onto the Project site representing a health risk to future workers. Accordingly, it will be important from both the environmental liability and worker health and safety perspectives that the developer’s ESIA establishes a good baseline understanding of potential soil and groundwater contamination of the Project area / area of influence. Cooling and processing of wastewater will be undertaken in an on-site wastewater treatment plant before discharge into the Sarkisov canal. A dedicated pipeline will be constructed to discharge treated wastewater back to the Sarkisov canal. The released water will meet the effluent discharge limits established in the World Bank Group (WBG) Environmental Health and Safety (EHS) Guidelines for Thermal Power Plants. At this stage, it is unclear how much agricultural land will need to be taken for the Project needs, resulting in termination of land lease agreements with its current users (there are no privately-owned lands in Uzbekistan). IFC-commissioned environment and social report suggests that some 55 ha of land may be impacted, affecting the livelihood of five farming households on the proposed Project sites. Land take and livelihood impact related risks will be assessed further through the site-specific Environmental and Social Impact Assessments (ESIAs). If such impacts are confirmed, the GoU may prepare initially a Resettlement Policy Framewor (RPF), followed by site-specific Resettlement Action and/or Livelihood Restoration Plans (RA/LRP); these will be prepared in compliance with national law and PS5. There are several associated facilities to the SyTPP2, within the Project’s Area of Influence (AoI) which need to be considered in terms of potential risk and impacts. These associated facilities comprise: (i) the new 500/220kV substation adjacent to SyTPP2 and (ii) approximately 300 meters of gas pipeline which will carry natural gas from the gas distribution station to the Project site boundary. Retrenchment An associated reputational risk of the Project is the expected retrenchment in SyTPP1. Based on MIGA’s ESRS for SyrTPP3 (ACWA project), the decommissioning of the existing SyTPP1, which is one of the main employers in Shirin, is likely to result in the retrenchment of a large number of staff, who are not likely to be fully absorbed by SyTPP2 and SyTPP3, while current unemployment in the area is already significant. Although not directly related to the Project, this retrenchment presents a social risk that may affect the Project’s support from the local community. If not planned, the large-scale retrenchment of workers may result in social disruption and local community resentment or opposition to SyTPP2 and SyTPP3. However, 7 neither SyTPP2 nor SyTPP3 developers will have any influence on the GoU’s decisions regarding the operation status and staffing of SyTPP1. Based on the information provided in the Environmental and Social Assessment Scoping Report (May 2020) prepared by AFRY, the environmental risks are assessed as High. Physical works envisaged under the Project are large scale, as they involve the construction of a 1500 MW gas-turbine generating plant; however, as the location is adjacent to SyTPP1 and SyTPP3, the expected site-specific environmental impacts of SyTTP2 will be similar to those of these plans, easily identifiable, and mitigation measures - easily identifiable. These impacts may include increased pollution due to improper care, handling and storage of construction material and waste, generation of excessive noise and dust. Once completed, risks related to the ongoing operation and maintenance of the SyTPP2 facility will include wastewater treatment and management, emissions control, and occupational health and safety, all of which will also be addressed in the ESIA/ESMP to be prepared for the Project. The following Performance Standards (PS) apply to the Project: • PS 1: Assessment and Management of Environmental and Social Risks and Impacts • PS 2: Labor and Working Conditions • PS 3: Resource Efficiency and Pollution Prevention • PS 4: Community Health, Safety, and Security • PS 5: Land Acquisition and Involuntary Resettlement • PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources2 • PS 8: Cultural Heritage Key Information Sources The key documents that were reviewed by the Bank team include: • IFC Transaction Structure Report, September 2020 • Environmental and Social Assessment (ESA) - Scoping Report, AFRY, May 2020 • Environment and Social Review Summary, ACWA Power Syrdarya, 2020 • EIA for SyTPP1 rehabilitation financed by ADB and EBRD, [Date] PS1: Assessment and Management of Environmental and Social Risks and Impacts An Environmental and Social Impact Assessment (ESIA) will be prepared in accordance with national permitting requirements under the Law on Environmental Expertise No.73-II of 25.05.2000 and PS1. The WBG EHS Guidelines and EHS Guidelines for Thermal Power Plants will be taken into account when drafting Terms of –Reference for the ESIA. The Project is expected to be classified as a Category I under the Decree of the Cabinet of Ministers of 07.09.2020 № 541 (high risk, paragraph 32 “Thermal power plants and other power plants for combustion of thermal capacity of 300 MW or more�). 2 Performance Standard 6 can be applied if there are protected areas, critical habitats, or endangered species in the vicinity of the project site. 8 The ESIA will need to consider potential cumulative impacts associated with the existing SyTPP1, and development of both SyTPP2 and SyTPP3, as well as other power plants planned for southwest Uzbekistan. Among other things, there is a potential for cumulative effects on ambient air quality, water use and water quality in the Sarkisov canal, and noise levels in communities. An important consideration will be the operational status of SyTPP1 after SyTPP2 and SyTPP3 enter into commercial operations. It is anticipated that SyTPP1 operations will be relegated to backup status in case of planned or unplanned shutdown of SyTPP2 or SyTPP3. This is expected as SyTPP1 is inefficient compared to the new plants, some of the equipment has reached the end of its useful life, and there is insufficient gas supply to fuel all three plants. To address cumulative effects, the Government should consider an integrated approach to approvals and permitting (including an integrated approach to ambient air quality) for the new and existing facilities to protect against inequities in regulations between the projects. During the appraisal stage, the project will extend its engagement with the government to determine parallel activities and if a cumulative impact assessment is required. The main risks of the projects are: physical and economical resettlement and livelihood risks in connection with potential land acquisition/cancellation of tenure contracts for Project affected people and restrictions on access. Work related risks relating occupational health and safety, social conflicts between workers and residents in Project areas, the spread of transmissible diseases and including COVID-19 pandemic, particularly because the need for setting up labor camps cannot be ruled out. Towards addressing the risks, the winning bidder will prepare the following instruments: (i) one detailed, overall ESIA, which will include a comprehensive cumulative impact assessment and a detailed site selection/analysis of alternatives; (ii) ESMP (iii) a Stakeholder Engagement Plan (SEP); (iv) Labor Management Procedures (LMP), and (v) a Resettlement and/or Livelihood Restoration Plan. In case land acquisition/termination of land tenure contracts already have been implemented, a Social Audit may have to be conducted to assess whether the adverse impacts of resettlement have been addressed in a manner consistent with the national legal framework and the objectives of PS 5. Prior to construction, the winning bidder will prepare and conduct consultations on these instruments and then submit them to the Bank for clearance and disclosure by the client and the Bank. The transition of power generation from SyTPP1 to SyTPP2 and SyTPP3 can be expected to result in the loss of employment for a substantial number of workers, and with a substantial economic and social impact on the town of Shirin. If not planned, the large-scale retrenchment of workers may result in social disruption and local community resentment or opposition to SyTPP2 and SyTPP3. As a requirement of PS1, the GoU will need to consider the impact of potential SyTPP1 retrenchment as a Project risk. It will be important during Project preparation for the Bank and the GoU to discuss this issue and identify solutions to mitigate the impacts of any retrenchment and prevent the significant local opposition that could result. To raise awareness about the Project and its short-term and long-term benefits, a SEP will be prepared together with a Grievance Mechanism to receive and facilitate resolution of concerns and grievances related to the client’s environmental and social performance. As part of the development of SEP – which will be prepared in a culturally appropriate manner – socially disadvantaged and marginalized groups, including women, will also be consulted. PS2: Labor and Working Conditions The construction of SyTPP2 will overlap with construction of SyTPP3, with SyTPP3 about 18 months ahead of SyTPP2 as of time of writing. Both projects will be taking workers from the same local labor pool, and 9 there will be an influx of workers to meet the needs of the Project that cannot be met locally. There is potential for misalignment of labor management approaches between the two projects that will disrupt the local labor market and leave gaps in management of the influx of job seekers. Considering that the potential size of construction workforce required is not yet known, it is unclear whether worker accommodation on site will be required or not. As SyTPP3 is already under construction, the experience there will be reviewed in planning for SyTPP2. It is likely that the Project’s workforce can be accommodated in the main town or any other residential area. The significant risks associated to accommodating workforce in residential areas is a potential conflict between workers and residents, likelihood of spreading transmissible diseases, and Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH). Considering the current COVID-19 pandemic, the WB Guidance on COVID-19 protection in the context of construction works and labor camps shall be adhered to and be included under contractor requirements. The LMP prepared by the winning bidder will set out details for preparing the labor management plans, including development of Grievance Mechanism for workers. Provisions will be made to train and hire as many as possible from local communities. The LMP may be amended at any time during the Project implementation to reflect changing conditions. The ESIA/ESMP will cover Occupational Health and Safety (OHS), including specific instruments that will need to be prepared by the winning bidder prior to commencement of works (ESH checklists, codes of conduct; safety training etc.). The civil works contracts will incorporate social and environmental mitigation measures based on the WBG EHS Guidelines, the ESIA/ESMP, and SEP, as well as specific language referencing the prioritization of the hiring of unskilled local labor. The contract will also include industry standard Codes of Conduct that include measures to address SEA/SH risks and a Grievance Mechanism for workers to raise workplace concerns. Retrenchment Based on the MIGA ESRS for SyrTPP3, SyTPP1 currently employs over 2,000 workers and is the primary employer in the area. SyTPP2 and SyTPP3 will require approximately 50 workers each during operations (although there may be additional employment as a result of outsourcing). The transition of power generation from SyTPP1 to SyTPP2 and SyTPP3 can be expected to result in the loss of employment of a considerable number of workers, with potential significance for the town of Shirin and nearby communities. If not planned, the large-scale retrenchment of workers may result in social disruption and local community resentment or opposition to SyTPP2 and SyTPP3. Neither SyTPP2 nor SyTPP3 developers will have any influence on the GoU’s decision on the operation status of and staffing of SyTPP1. IFC has discussed the retrenchment issues with GoU and has developed a ToR for planning the retrenchment of workforce from SyTPP1 in a manner compatible with international standards, but GoU approval of the ToR is still pending. In line with IFC’s and MIGA’s approach, the WBG will advise the GoU to undertake retrenchment as per PS2 for the workers of SyTPP1. Such advice requires that the Project lawyers compare current GoU practice with the requirements of PS2 and identify any gaps and advise the GoU with practical proposals on how to plan and implement a retrenchment plan to reduce the adverse impacts of retrenchment on workers. Additionally, the GoU may be advised to include language in the Project tender that requires the preferred bidder to give hiring preference to qualified employees subject to retrenchment from SyTPP1, and a more general preference to the employment from local communities. PS3: Resource Efficiency and Pollution Prevention 10 PSS 3 is relevant for this Project. Assessment of risks and impacts and proposed mitigation measures related to relevant requirements of PSS 3, including raw materials, water use, air pollution, hazardous materials, and hazardous waste will be included within scope of the ESIA/ESMP. ToR for ESIA will require an estimate of GHG emissions for both plants’ construction and operation, as well as an assessment of water needs associated with the wet cooling system. If the generated waste is considered hazardous, the Borrower will comply with existing requirements for management (including storage, transportation and disposal) of hazardous waste, including national legislation and applicable national conventions. Where such requirements are absent, the Borrower will adopt Good International Industry Practice (GIIP) alternatives for environmentally sounds and safe management and disposal, in measures accessible in the country context. The ESIA and appraisal-stage ESMS will include an assessment of national capacity for handling hazardous waste, identifying gaps, and offering harmonized specific and realistic measures to build capacity to ensure compliance with national law and international standards. PS4: Community Health, Safety, and Security PSS 4 is relevant for this Project. Construction and rehabilitation activities are often associated with the generation of dust and noises, soil disturbance, disruption of access and traffic congestion, generation of waste, labor influx and associated disturbances to local communities. Hazardous materials will be controlled so as not to open any access to them to the communities. Project activities are not expected to create emergency events, but emergency preparedness and planned responses, particularly in the event of gas leaks or explosions, are important mitigations measures. These risks will be further assessed and reflected in ESIA. There are communities located between 320 m and 1,000 m from the Project site with the nearest town (Shirin) is located approximately 2000 m to the east. Potential risks include health effects related to noise, light, and air emissions3 from the Project; public safety risks related to construction activities, including increased traffic; and social disruption from influx of workers and jobseekers. The construction of the SyTPP2 will overlap with the construction of the SyTPP3, which will magnify the impacts listed above. Additional fencing, hoarding, noise and light attenuation may be necessary to mitigate construction nuisance impacts. Estimates of GHG emissions from the operation of SyTPP2 will be included as part of Project preparation. All these impacts will be further verified during Project preparation. These cases will be identified, and the client will evaluate and put in place a mechanism to manage potential road safety risks, risk to workers, nearby communities and other road users. The risk of impacted of electric cables (accumulators) on workers is considered low as modern technologies will be implemented and appropriate training will be provided for workers. Mitigation measures for the above risks will be described in the ESMP with appropriate mitigation measures and discussed with stakeholders during public consultations. At this stage, the SEA/SH risk is assessed as moderate mostly due to the status of national Gender-Based Violence (GBV) legislation, 3 The project’s GHG emissions will primarily be carbon dioxide (CO2) emitted by the generation units due to combustion of natural gas. The estimated Project GHG emissions during base load operation (assuming a fuel factor of 57.28 gCO2/MJ and 60% net efficiency) are expected to be 343.68 gCO2 /kWh with a total direct annual GHG emission of approximately 4.4 million tonnes of CO2 per annum based on an annual electricity generation of 12,613 GWh/annum. This performance is comparable with good global industry practice benchmarks. 11 gender norms, and the peri-urban and urban location of most project activities. The SEA/SH risks specifically in the context of the proposed activities will be assessed during preparation as part of the environment and social assessment process. Together, the SyTPP2 and the SyTPP3 projects will create a large demand for skilled and unskilled construction labor. The housing stock in Shirin and neighboring settlements may be insufficient to accommodate this labor force. As such, both projects may have to consider construction of worker housing and security arrangements to minimize social disruption over the length of the construction period. The ESIA/ESMP will include assessment of work-related health risks; worksite and road safety; HIV/AIDS and sexually transmitted diseases; excessive noise and dust levels, site safety awareness and access restrictions; SEA/SH; and labor influx. Fencing will be installed around the construction site and areas where there is a risk to community health and safety. The winning bidder will be required to employ measures to control labor influx risks based on Bank requirements, as well as the IFC/IBRD Good Practice Note. As part of the SEP, a GRM for the public will be prepared and consulted on with local communities during Project preparation. There may be security risks associated with the different Project sites, and security personnel may be deployed. Security management training/plans should be incorporated in the ESIAs. Considering the current COVID-19 pandemic, the ESMP and LMP shall be adhering to the WB Guidance on COVID-19 protection in the context of construction works. PS5: Land Acquisition and Involuntary Resettlement PSS 5 is relevant for this Project. The Project will be implemented in the outskirts of the Town of Shirin, approximately 10 km west of the City of Bekabad, in the district of Shirin Town, in the Syrdarya Region of Uzbekistan. The land allocated for the development of the SyTPP2 is a 55ha plot that is currently owned by the State with 45ha tenanted between 5 farmers for livestock and commercial crop production. The GoU is responsible for making the land available for the Seller as per the terms of the PPA and has issued notification to the tenants to return the land to the State as the first step in the government-led resettlement process. The nearest settlement is approximately 320 m from the current site boundary. If such permanent land acquisition or land use restrictions on privately owned/ used lands are found to be unavoidable during preparation, the Project owner will prepare a site-specific Resettlement Action/Livelihood Restoration Plan (RA/LRP) in compliance with PS5 before Appraisal. Moreover, prior land use or presence of other assets will need to be assessed further. The Project will not finance any low-voltage distribution lines that would cause impacts on privately used lands or any private entities. The Project will take into account the broader country context in respect of forceful evictions and forced labor (as described under Section on Other Relevant Project Risks). PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources According to the Environmental and Social Assessment Scoping Report (May 2020), three Key Biodiversity Areas (KBA) within 50 km of the Project site have been identified4 and two national hunting management areas are noted as areas of potential conservation importance. The pre-construction baseline studies of the environmental and social conditions within the Project’s AoI provide the basis for assessing potential Project risks and impacts and applying the mitigation hierarchy. 4 IBAT Proximity Report, 2018. Generated under license 791-6196 from the Integrated Biodiversity Assessment Tool on 09/01/2020. http://www.ibat-alliance.org (IBAT 2020) 12 Sound characterization of baseline conditions is essential for the Project Sponsor as a means of identifying key risks that could affect the feasibility of the Project in terms of cost, schedule, regulatory constraints, public perception and opinion of the Project. IFC has similar needs for a sound baseline for any Project in which it invests, as the baseline is an indicator of a Project’s viability and ability to be developed consistent with the IFC Performance Standards. Bird surveys will need to be carried out during the ESIA to complete a full year of surveys to determine the use of the Project area and its AoI by bird species to confirm their presence and evaluate the predicted impacts in more detail. Bird collisions and electrocution are a risk for the OHL that can be mitigated with flight diverters, but residual risks remain. A post-construction bird mortality monitoring program will be implemented during the operation phase. Additionally, the ESIA should include terrestrial and aquatic surveys of the Sarkisov Canal. Risks to the local and or migratory birds such as electrocution is envisaged from low to moderate however, this will be further elaborated during the project appraisal and will be assessed in details during project ESIA. PS7: Indigenous Peoples PSS 7 does not apply to this proposed Project as there are no indigenous peoples identified. PS8: Cultural Heritage Uzbekistan is home to a rich and unique cultural heritage that includes many ancient sites. The ESIA/ESMP will include a section on protection of Cultural Heritage (CH) including checklists for "chance find" procedures to be carried out if artefacts are discovered during construction. The Project is not expected to have significant impacts on CH. Access to Client Documentation The Client disclosed locally [insert website] and the World Bank on its website [link to document] on [date] the following key documents for the [named] Project: • ESIA/ESMP. • SEP. • LMP. • RPF. III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the ESRS would be disclosed and the PAD-stage ISDS would be prepared: ……. B. For Category C or Category FI projects that do not require an ESRS, the target date for preparing the PAD-stage ISDS: N.A. C. Time frame for launching and completing the safeguard-related studies that may be needed. 13 The specific studies and their timing5 should be specified in the PAD-stage ISDS: The winning bidder to be selected will prepare the following instruments for the proposed Project, to be approved by the Bank prior to appraisal: - an Environmental and Social Impact Assessment (ESIA) and Management Plan (ESMP); - Resettlement Planning Framework; - Labor Management Procedures (LMP) for the Project; - a Grievance Mechanism (GM); and - a Stakeholder Engagement Plan (SEP). During Project preparation, the Bank will work with the winning bidders to identify appropriate monitoring framework to ensure that the Bank performance standards will be complied with by the CCGT TTP plant supported under the proposed guarantee program. The planned SyTPP2 is not expected to trigger the World Bank’s Operational Policies on Projects on International Waterways (OP 7.50) or Projects in Disputed Areas (OP 7.60). IV. APPROVALS Signed and submitted by: Date Task Team Leader: Ferhat Esen, Zhengjia Meng, Maksudjon Safarov Cleared by: Regional Standards Coordinator: Alexandra Bezeredi / Funke Asaolu Comments: Approved by: Regional Environmental and Social Abdoulaye Gadiere Standards Advisor: Comments: Practice Manager: Sameer Shukla Comments: 5 Reminder: The Bank's Access to Information Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. 14